Waddell & Reed has included a feature in its 529 college investing program that allows investors to schedule automatic deductions from their paychecks that will be invested in an education savings account.
The feature is available through the companys InvestED Plan and allows those saving for college to set with their employers a predetermined amount of money as little as $25 that will be deducted from their paychecks and socked into Waddell & Reeds 529 plan.
Any size business can take advantage of the feature for free, the company said. The savings program is available nationwide through a network of financial advisors.
Thomas Butch, who heads marketing at Waddell & Reed, said automatic payroll deductions have helped make 401(k)s wildly popular. The firm chose to bundle the feature in its 529 programs in an effort to do the same for the college savings vehicle.